Our Bridging Loan Service

Special features of what we offer include:

• Whole of market service - we work directly with UK bridging lenders
• Lowest Rates - Access to leading bridging loan deals 
• Exclusive Deals - Access to exclusive bridging loan deals not available on high street
• Fast turnaround - speak to us today if you need to move quickly
• Buying a property at auction? - call us today

To investigate your bridging loan options call our mortgage team on 0203 198 4485 or fill in our call back form.

We can provide bridging loan options and then provide mortgage solutions once the bridging loan is no longer required.

What is a bridging loan?

Bridging loans are commonly used as a short term finance solution. They are designed to cover or ‘bridge’ an interval between two transactions. Bridging loans can be used for almost any purpose, although they are most commonly used to fund the purchase of a new property before a person has sold their existing property.

Generally speaking, bridging loans tend to be aimed towards landlords and amateur property developers, including those purchasing at an auction where a mortgage is needed quickly.

When taking out a bridging loan, you’ll be told if it’s either a first charge or second charge loan. This refers to the priority the loan has to be repaid. If you already have a mortgage on your current home, it is likely that the mortgage will have first priority to be repaid if your home is repossessed.

The type of bridging loan that you will need is likely to depend on how far you are in the process of selling your existing home.

Types of bridging loans

Bridging loans usually come in two different forms.

1. Closed bridging loan – This is a loan where, before the bridging loan is taken out, the borrower sets out a predefined and planned exit to repay the loan. Closed bridging loans typically have less risk to the lender and are consequently easier to obtain.
2. Open bridging loans – whilst bridging finance lenders normally require a detailed exit plan, this is not the case with open bridging loan. An open bridging is usually preferable when a borrower needs to pay for a transaction in a very short time period, and has not had the time to arrange funding. Whilst there is no fixed repayment rate, you will normally be expected to pay it off in a year.

In addition to bridging loans coming in two different forms, they can also differ on repayment terms. Similar to mortgages, bridging loan rates can be fixed or variable.

• A fixed rate bridging loan means that you will pay the same amount of interest across the whole loan term.
• A variable rate bridging loan means that the interest rate will fluctuate based on the Bank of England’s base rate.

With all of the different options available, we understand that finding the right deal for you can often be overwhelming. Our specialist bridging loan advisory team is experienced in helping borrowers find bridging loan deals that fit their needs without all the stress.

Advantages of bridging loans

Flexible lending criteria – Generally, bridging loan lenders are not concerned with income, affordability and credit history. Instead they take into consideration the value of the property being offered as security and the exit route.

Beat the competition – Bridging loans can be arranged and transferred into your account in as little as 48 hours; whereas other funding options can take weeks or even months to arrange. So if you’re looking to purchase a house, a bridging loan can allow you to secure the property quickly before it is snapped up by someone else!

Mortgage chain issues - secure your ability to buy, even in the event that the home buying chain breaks down. For instance, if the sale of your old house falls through, a bridging loan can allow you to have sufficient funds to purchase a new house.

As bridging loans are a short term financial solution, you also can expect to pay higher interest rates than other funding options; which is why you should contact a mortgage broker to help in considering your options, and addressing your suitability for a bridging loan.

Where can you get a bridging loan?

As you can see, bridging loans come in a range of different shapes and sizes to fulfil a variety of different needs. As a result, it is often hard to sift through all the different deals to find the bridging loan that’s right for you, which is why we recommend that you contact a mortgage broker.

A mortgage broker can help analyse your personal situation and offer independent unbiased advice and guidance to help you find a bridging loan that you can afford, and that fulfils your bridging loan goals.

In addition to this, bridging loans are not widely available in high street banks. We work with the majority of UK bridging loan lenders to bring you exclusive and leading bridging loan rates tailored to your specific financial situation and needs. If you would like to compare bridging loan deals, or have any queries regarding bridging loans; why not call us today for a free initial consultation.

To investigate your bridging loan options call our mortgage team on 0203 198 4485 or fill in our call back form.